The latest news of interest to multifamily owners of apartment buildings in Oregon and Washington.
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Wednesday, March 6, 2019

Brookings Institute: "Oregon's New Law Will Not Fix the Underlying Problem of High Housing Costs"

Jenny Schuetz, the David M. Rubenstein Fellow at the Brookings Institution, wrote an article discussing the shortcomings of Oregon's new rent control program. According to Schuetz, "Oregon's new law will not fix the underlying problem of high housing costs, and it could even make matters worse for vulnerable families." She highlights the two biggest problems exacerbating housing affordability across the US:

Low wages and unstable incomes generated by labor markets

In-demand cities failing to build enough housing to keep up with demand, particularly in neighborhoods with good public schools and access to jobs and transportation

While she acknowledges that Oregon legislators made efforts to avoid some of the pitfalls of previous rent control programs, she does not believe it will be enough to stave off unintended consequences. As an example, she states that a developer who had planned to build 8 units may now build only 5, in order to stay under the threshold that would trigger rent restrictions. Schuetz also believes the increased tenant protections included in the bill could encourage some landlords to screen out less desirable tenants, such as families with young children. Read more.

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HFO Investment Real Estate LLC

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Portland, OR 97214 (503) 241-5541

Cody Hagerman, Principal Broker, licensed in Oregon & Washington

Portland-based HFO was founded in 1999 and specializes in the apartment sector of the commercial real estate market. The company is known for more than its ability to attract the largest possible pool of buyers. By offering additional client benefits including complimentary industry-specific events, market news, and original video programming via HFO-TV and Multifamily Marketwatch podcasts. HFO is a thought-leader within its category. From its inception, HFO has operated in sharp contrast to most of its industry competitors, using intra-office collaboration to provide service to more customers through sales velocity and loyal client relationships.